Shares of Jindal Steel and Power Ltd (JSPL) on Tuesday gained 10% after the company reported a consolidated net profit of Rs 305.62 crore during the quarter ending 31 March 2020. In its latest quarterly results, the steel giant also reduced its net debt by Rs. 4,379 crore in FY20.
The JSPl stock advanced 9.95% to Rs 106 on the Bombay Stock Exchange, while the shares jumped 9.93% to Rs 106.20 on the NSE.
This was after the JSPL on Monday reported a consolidated net profit of Rs 305.62 crore during the quarter ending 31 March, 2020. The year gone by also saw the steel giant improving both on the volume front and the product mix which made it more resilient and
nimble for the uncertainty and difficult times that wrapped the world during the latter part of the reported quarter.
In a quarter which was marked initially by improving realisation where the latter part saw steel demand going down globally, the gross revenue for JSPL Standalone came in at Rs. 6,767 crore. With the spread of Covid-19 in the months of Jan-Feb outside of China, the Company decided to build its raw material inventory which helped it to continue production through a period of lockdown announced in the last week of March by the Indian government. On the back of increased realisations, supported slightly by falling costs, JSPL Standalone reported EBITDA at Rs. 1,562 crore (a rise of 8% QoQ). During 4QFY20, the production of pellets was 1.90 million tonnes (rise of 6% YoY). The company sold 0.46 MT during 4QFY20.
The latest positive development for the JSPL came just days after the company recorded its highest-ever export of steel and related products during April 2020, a period adversely affected by the global COVID-19 pandemic and nationwide lockdown in India. The company exported 2,48,000 metric tonnes (MT) of steel and related products, clocking a phenomenal growth of 109% (month-on-month). The export also contributed to 74% of its total sales volume.